USA: TXI 1Q13 results reap the benefits of new line start-up
Texas Industries Inc saw first quarter turnover increase by 33.6 per cent to US$233.1m, while corporate overheads were reduced by 15 per cent to US$8.7m and the EBITDA advanced by 94.2 per cent to US$37.3m. The interest charge jumped by 123.4 per cent to US$17.4m, reflecting the start-up of the Hunter cement plant in Texas, and at the pre-tax level there was a swing form an underlying loss of US$7.5m to profit of US$0.6m. At the net attributable level there was a swing from a US$2.7m loss to a US$0.4m profit.
Texas Industries reported financial results for the quarter ended 31 August 2013. These included a net income of US$0.4m or US$0.01 per share. The same quarter the previous year recorded a loss of US$2.7m or US$0.08 per share.
"EBITDA increased US$23.7m on US$58.6m higher net sales," stated TXI's CEO Mel Brekhus. "The improved results reflect the continuing improvement in construction activity in all of our markets."
"It is satisfying to start reaping the benefits from our recent strategic activities. So far, the start-up of our new kiln in central Texas has been the most successful of any I have been involved with in my career and we are realising the benefits we expected from the expansion of our vertical integration footprint last spring.
"We continue to focus on doing everything we can to fully participate in the market recoveries under way, including accelerating the resumption of production from the first kiln in central Texas early next calendar year, " added Brekhus.
Cement shipments increased by 17.4 per cent to 1.19Mt (1.31Mst) with turnover from the cement division rising by 18.1 per cent to US$114.7m. The trading profit advanced by 66.2 per cent to US$14m. The Texas share of cement sales recovered from 67 to 70 per cent as Texan cement deliveries rose by 23 per cent compared with an eight per cent advance in California. The average cement price improved by 1.8 per cent to US$87.55/st (US$79.43/st), with the average price improving by two per cent in Texas and by one per cent in California.
The underlying turnover from the aggregates operations rose by 20 per cent to US$49.2m and the trading profit advanced by 64.7 per cent to US$6.6m.
Aggregates shipments increased by 13.6 per cent to 4.03Mt (4.45Mst) and the average price improved by 11.5 per cent to US$8.84/t (US$8.02/st), while the cost of sales increased by 5.9 per cent.
The ready-mixed concrete and associated operations reported an 89.3 per cent rise in turnover to US$92.6m and the prior year's trading loss of US$1.9m was changed into a trading profit of US$6.1m. Ready-mixed concrete deliveries jumped by 74.7 per cent to 0.87Mm³ (1.13m cubic yards) as prices improved by 8.5 per cent to US$106.90/m³ (US$81.65 per cubic yard).
